Cryptocurrency exchange Gemini is now providing its users an additional layer of financial privacy through shielded Zcash (ZEC) withdrawals which are now supported on the exchange as announced by Gemini on September 29, 2020. By adding support for Zcash (ZEC) withdrawals, the New York-based crypto exchange has become the first regulated exchange to introduce this feature on its platform.
Two types of ZEC addresses now offered to users
According to the Winklevoss brothers-owned digital assets exchange Gemini, Zcash addresses provide users with an additional layer of privacy and security within the regulated and compliant framework. The company says that ZEC now provides users with complete control of their privacy and they are in control of what information about their transactions they want to share on the blockchain. In this way, it has left behind the other traditional digital currencies such as the largest cryptocurrency Bitcoin (BTC), the company added.
Furthermore, according to Gemini, there are two types of addresses that Zcash offers to users. The first one is the shielded address or z-address which starts with the letter z. While on the other hand, the second one is the transparent address or t-address which starts with the letter t. When you use t-addresses for making transactions, they can be traced.
However, if you are making transactions with z-addresses, then there is no chance of tracing them as they all are encrypted with a technology known as zero-knowledge proofs. The use of shielded addresses lets you protect your size of transactions as well as your personal identity.
Currently, users’ ZEC tokens are stored in t-addresses of their Gemini account. However, the company said that they can withdraw their ZEC to a z-address if they want to leverage the benefit of a shielded withdrawal. The company has already provided users with permission of depositing their ZEC into their accounts through a z-address.
The company said in the announcement that by supporting shielded withdrawals, it has taken a step forward in its mission of providing users the control of their privacy. It also said that it is looking forward to providing you with independence and opportunity via cryptocurrency.